As we move with Arizona State Senator Farnsworth’s Group on new HOA legislation, we also have elections coming up.

One of the institutions Arizona voters get to decide on statewide is the Corporations Commission.

It was only via the ACC web site in 2008, emanating from a minor dispute over the Crossings HOA in Prescott, that we discovered the “round tripping” one HOA Management Company was doing. In this case HOAMCO, a small local company in Prescott. Round tripping in that they were aggregating HOA deposits under their management into a bank, in this case Desert Hills Bank, which then somehow lent those moneys back to Justin Scott, HOAMCO President, for “other” purposes. A bank which subsequently was bailed out by the FDIC costing taxpayers a “mere” $106million

Having once picked that up, we now see the pattern repeated, not just in Arizona, but nationwide. Another Arizona “HOA bank”, First National Bank of Arizona, similarly cost the FDIC in 2008, but in this case – $862million. Read more: